Is FRME halal?
First Merchants Corporation
Not halal
First Merchants Corporation did not pass AAOIFI screening. The failed check is shown below.
Checked: 12 October 2026
Exchange
NASDAQ
Price
39.6
Day
+0.30%
Market cap
$2.45B
Industry
Banks - Regional
Sector
Financial Services
What the company does
First Merchants is a regional bank in Indiana, Ohio and Michigan: business and home loans, deposits, wealth management. Revenue comes from loan interest and fees.
What was checked
The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.
Business activity
Prohibited activity: Banks - Regional
Interest-bearing debt / market cap
limit 30%
Interest-bearing debt $1.39B ÷ 36-month average market cap $2.20B = 63.0%
63.0%
Fail
Cash & investments / market cap
limit 30%
Cash + interest-bearing securities $1.65B ÷ 36-month average market cap $2.20B = 74.8%
74.8%
Fail
Non-compliant income / total revenue
limit 5%
Interest income $924.79M ÷ annual revenue $662.95M (2025) = 139.5%
139.5%
Fail
Figures from the company's filings (2026-03-31), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $2.45B.
For information (AAOIFI 3/1 note): cash + receivables are 3.7% of total assets (2026-03-31). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.
In the lists
- In the S&P 500
- Not in the S&P 500
- Held by funds
- Not held by any tracked fund
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Halal is the first question. The second: when to enter?
Our scanner watches 1454 halal stocks around the clock and fires a signal with entry, TP and SL when a technical setup completes. The full signal history — with outcomes — is public.
This is neither investment advice nor a fatwa. Screening is based on public financial statements and AAOIFI standard No. 21; data may lag. For a personal decision consult your own scholar.